HHS Awards $723.5M for Biotech R&D to Advanced Technology International

Contract Overview

Contract Amount: $723,524,000 ($723.5M)

Contractor: Advanced Technology International

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-29

End Date: 2030-12-31

Contract Duration: 2,650 days

Daily Burn Rate: $273.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OT TASK ORDER 3

Place of Performance

Location: SUMMERVILLE, BERKELEY County, SOUTH CAROLINA, 29486

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $723.5 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: OT TASK ORDER 3 Key points: 1. Significant contract value for R&D in biotechnology. 2. Full and open competition suggests a competitive bidding process. 3. Long performance period (2023-2030) indicates a substantial, ongoing need. 4. Focus on preparedness and response highlights critical national security implications.

Value Assessment

Rating: good

The contract value of $723.5 million over approximately 7 years is substantial. Benchmarking against similar large-scale R&D contracts in biotechnology is difficult without more specific task details, but the value aligns with significant federal investments in this sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The significant investment in biotechnology R&D aims to advance national preparedness and response capabilities, potentially leading to long-term public health benefits and cost savings through improved health outcomes.

Public Impact

Enhances national capabilities in biotechnology for public health emergencies. Supports cutting-edge research with potential for future medical breakthroughs. Invests in domestic R&D capacity, fostering innovation and expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or evolving requirements.
Biotechnology R&D is inherently high-risk with uncertain outcomes.

Positive Signals

Full and open competition promotes value.
Focus on preparedness addresses critical national needs.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under Research and Development in Biotechnology, a critical sector for national security and public health. Federal spending in this area is substantial, driven by the need for innovation in areas like disease prevention and response.

Small Business Impact

The contract was awarded to Advanced Technology International, a large business. There is no explicit indication of small business participation or subcontracting goals within the provided data, which could be an area for further review.

Oversight & Accountability

The contract is managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, a key agency for national health security. Oversight will be crucial to ensure R&D objectives are met effectively and taxpayer funds are used efficiently.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

High R&D risk
Long contract duration
Potential for evolving requirements
Lack of explicit small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $723.5 million to ADVANCED TECHNOLOGY INTERNATIONAL. OT TASK ORDER 3

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $723.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2030-12-31.

What specific R&D areas will be prioritized under this contract, and how will progress be measured against the firm fixed price?

The specific R&D areas are not detailed in the provided data. Progress measurement will likely involve regular technical reviews, milestone achievements, and deliverable assessments. The firm fixed price structure implies that the contractor is responsible for managing costs to meet the agreed-upon scope and quality, with potential penalties or incentives tied to performance metrics.

Given the long duration and R&D nature, what mechanisms are in place to mitigate the risk of technological obsolescence or shifts in research priorities?

Mechanisms to mitigate obsolescence and shifting priorities typically include contract clauses allowing for modifications, regular strategic reviews with the government, and performance-based incentives that adapt to evolving needs. The ASPR's oversight role is critical in ensuring the research remains relevant and aligned with current and future public health threats.

How does the $723.5 million investment compare to other federal R&D spending in biotechnology, and what is the expected return on investment for national preparedness?

This contract represents a significant federal investment in biotechnology R&D. While direct ROI is hard to quantify for R&D, the expected return is enhanced national preparedness, faster response to health crises, and development of countermeasures. Benchmarking against other federal R&D budgets would provide further context on its relative scale and strategic importance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 315 SIGMA DR, SUMMERVILLE, SC, 29486

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $723,524,000

Exercised Options: $723,524,000

Current Obligation: $723,524,000

Actual Outlays: $23,656,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50123D00005

IDV Type: IDC

Timeline